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Why should you use subcontractors

1. Subcontractor Support Can Help With Major Projects There will probably come a time when your utility needs to take on bigger projects in order to grow. Subcontractors can be a valuable resource in these scenarios and allow you to take on new, larger clientele. This allows you to find those additional “helping hands” for larger or specialized contracts, thus create a custom team for every new client or project. 2. It Is Cost Efficient and Risk Adverse When your business needs some extra minds on a large project, hiring subcontractors is often much more cost effective than bringing on new, full-time employees. It also helps avoid risk by hiring a reliable and safe firm with substantial niche experience. As subcontractors typically cost more than self-performing in-house, it is still more cost-effective in most cases. Subcontractors do not get full time employee benefits, office space or equipment. Hiring contractors also relieves you from having to pay employee taxes and a full-time salary. When all is said and done, hiring a subcontractor is about 20 to 30 percent more cost effective than hiring a full time employee. 3. Subcontractors Provide High-Level Expertise Subcontractors will often offer a superior service and provide expertise that you cannot get from your staff. In most cases, they have been working in a specific field for a number of years and have had ample opportunity to hone their skills. Additionally, a subcontractor is likely to have done similar work before and will be able to get the job done quickly and efficiently. 4. Increased Productivity Increasing productivity is probably the best benefit of working with a subcontractor. Rather than bogging your employees down with simple but intense tasks, you can outsource these projects to a third party. Doing so will allow your full time employees to focus on core business needs and may actually get the job done faster if your subcontractor has expertise in this area. 5. Absolutely NO Long Term Commitment Hiring subcontractors allows your business more flexibility than if you were to hire new, full time employees. Instead of bringing them on for long term work, you hire the contractors to work on a few short term projects and then part ways. With full-time employees, ending the relationship can be more complicated, can create considerable time and costs (unemployment, severance, etc.) and may end in legal issues. This means there is a good chance you will end up paying someone a large salary even if you do not require their services anymore. 6. Subs Do Have The Specialized Knowledge Needed There will be times when your company will need to take on a project that will require the services of a highly skilled specialist that can add value for your client and be "part of your team." 7. Less Legal Obligations Subcontractors are the owners and operators of their businesses and, therefore, are not entitled to the same legal protections as employees.


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